Mortgage rates are up across the board this week, including for jumbo loans which sometimes buck the market trends.
The average rate on a 30-year jumbo mortgage averaged 3.41 percent, higher than last week’s 3.36 percent, but still lower than it was even earlier this year.
A jumbo mortgage, also known as a non-conforming loan, is one that exceeds the maximum value of financing that can be bundled for sale to Fannie Mae or Freddie Mac. In most areas of the country, you’ll need to get a jumbo mortgage if you’re planning to finance more than $548,250 of your home purchase. In more expensive areas, that threshold jumps to $822,375.
Whether or not you need a jumbo mortgage has everything to do with how much financing you’re requesting, not with the actual sale price in your real estate transaction. You could get a conforming loan on a multimillion dollar home if your down payment makes up the difference between the price and the jumbo mortgage threshold.
Mortgage experts largely said in Bankrate’s weekly poll that they expect mortgage rates to continue to rise in the week ahead.
“Rates are pushing higher on concerns about stimulus-fueled inflation,” said Greg McBride, Bankrate’s chief financial analyst.
That largely tracks with the prevailing view over the last few months, that rates should trend upward for much of 2021, even if it takes months or years for them to reach their pre-pandemic levels again.